China’s Trade Crackdown Sparks Fury as Japan Calls Move ‘Intolerable’

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Asian Observer
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Japan issued a strong protest with China after Beijing added 20 Japanese defence-related entities to its export ban list for dual-use items, demanding the immediate withdrawal of the measures, a senior government official said

Japan’s Deputy Chief Cabinet Secretary Kei Sato on Tuesday described the move as “absolutely intolerable and extremely regrettable” during a press conference, adding that Tokyo will evaluate the potential impact and consider necessary responses.

According to Japan’s Foreign Ministry, the protest was formally submitted by Masaaki Kanai, head of the Asian and Oceanian Affairs Bureau, along with senior officials from the Japanese Embassy in China and the trade ministry

The latest restrictions follow China’s tightening of dual-use export rules to Japan on January 6. Dual-use items are materials and technologies that can serve both civilian and military purposes, including rare earth elements critical for manufacturing high-tech products such as electric vehicles, aircraft, and weapons. China is the dominant global supplier of rare earths.

Among the newly targeted entities are subsidiaries of Mitsubishi Heavy Industries Ltd. and Kawasaki Heavy Industries Ltd., the Chinese Commerce Ministry said.

Following the announcement, a Kawasaki Heavy Industries official said, “We will confirm more details of the export restrictions,” while IHI Corp., known for aircraft engine development for the Japanese Defence Ministry, said it is “still in the process of confirming facts” after six of its group firms were included in the ban

Several other companies expressed concern over the lack of clarity regarding the reasons for their inclusion.

Yasuhide Yajima, executive fellow at the NLI Research Institute, said, “The opaque operation of China’s export controls creates problems for Japanese firms because it undermines their predictability. No solution is in sight, as it is part of Beijing’s national policy,”

Meanwhile, Yoshinobu Tsutsui, chairman of the Japan Business Federation, urged China to retract the measure targeting specific companies and called on the Japanese government to take an “appropriate approach” to resolve the situation.

Japan has been closely monitoring the developments and is expected to respond in coordination with industry stakeholders to mitigate potential disruptions to high-tech manufacturing and defence supply chains.

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